Nigeria Mulls Tougher Insurance Industry Regulations

Moves has been made to make Nigeria IAIS compliant This is after the NAICOM intensifies its checks against unethical practices.

There have been stronger moves to have Nigeria's insurance industry become IAIS compliant as the country's National Insurance Commission (NAICOM) intensifies its checks against unethical practices.

The insurance industry is worried that the recent critical period that the banking sector found itself in could also reflect on Nigerian insurance groups.

The Commissioner for Insurance in Nigeria, Fola Daniel commented that both the banking and insurance sectors share common sentiments, however the main difference is how consumers react in times of crisis.

NAICOM is seeking to protect policy holders and investors in the insurance industry, according to the Chairman of the Senate Committee on Banking, Insurance and other Financial Institutions, Nkechi Nwaogu.

According to Nwaogu, the insurance industry has not stood up to its promise to play a strong role in the Nigerian economy and should make extra efforts to contribute to the country's growth.

NAICOM, said Nwaogu, would be empowered to eventually regulate the entire insurance sector.

NAICOM is a member of the IAIS, although Nigeria's laws and regulations have not been tested to ensure that they comply to IAIS principles.

Nigeria is seeking to change this fact and bring Nigeria's insurance industry in line with those of South Africa, Kenya and Ghana.

A bill that will update the Nigerian insurance laws is due to be passed by the National Assembly soon.